📉 50% Tariff on Copper Sparks Global Volatility!
On July 8, President Trump announced a 50% tariff on copper imports, effective from late July to August 1, pushing U.S. copper futures up over 12% to a record high.
🔎 The measure, aimed at boosting domestic production of the key metal for electric vehicles, infrastructure, and defense, creates uncertainty in the global supply chain. Exporting countries like Chile, Canada, and Mexico, which have trade agreements with the U.S., are on alert.
💱 In the markets, the effects are already noticeable:
Companies like Freeport‑McMoRan saw their stocks rise, although they warn of global risks.
In the junk bond market, investors are taking advantage of the volatility to buy higher-yielding U.S. paper.
Gold, as a safe haven, remains strong: the price has risen 25% in 2025, driven by global tensions.
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📉 50% Copper Tariff Sparks Market Turbulence
On July 8, President Trump announced plans to impose a 50% tariff on copper imports, potentially effective by late July or August 1, sending U.S. copper futures surging over 12% to record highs.
🔎 This move aims to boost domestic production of a metal essential for EVs, infrastructure, and defense, but it rattles global supply chains. Key suppliers—Chile, Canada, Mexico—are on alert despite existing free-trade agreements.
💼 Market reactions:
Freeport‑McMoRan shares climbed, though it warned of broader economic fallout.
Investors are snapping up U.S. junk bonds, viewing the tariff-driven volatility as an opportunity.
Gold remains buoyed—up 25% in 2025—as geopolitical risk supports safe‑haven assets.